International Journal on Customer Relations

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Customer Criterion for Selecting a Bank:An Exploratory Factor Analysis from an Indian Perspective


Affiliations
1 Assistant Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh, India
2 Associate Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh, India
     

   Subscribe/Renew Journal


The Indian banks are paving their way towards the goal of financial inclusion, i.e., making financial services accessible to everyone. With the growing economy, banks are acting as a pillar for sustainable development. These days banks are facing a challenge to attract and retain their customers. They are formulating various strategies in order to gain or tap the maximum number of customers; therefore, it becomes imperative for banks to recognize the factors which the consumer consider while selecting a bank. This study focuses on the customers of north India , specifically the tier-2 and tier-3 cities, where people still lack in terms of financial literacy. A survey was conducted with a sample size of 330 respondents out of which 308 were considered for analysis. Various factors were identified using exploratory factor analyses which were reputation, technology, branch availability, appearance, word of mouth, customer services, price and amenities, These were well thought-factors by the customers keeping bank selection dimensions in the center stage. This kind of study would help banking specialists to customise their strategies in terms of increasing the number of customers as the competition is high in the market. Moreover, it would also help banks in formulating region-wise strategies.

Keywords

Banks, India, Exploratory Factor Analysis, Customers, Selection Criteria.

JEL Codes: M1.

Subscription Login to verify subscription
User
Notifications
Font Size


  • Ahmad, W. M. W., Rahman, A. A., Ali, N. A., & Seman, A. C. (2008). Religiosity and banking selection criteria among Malays in LembahKlang. Shariah Journal, 16(2), 279-304.

  • Almossawi, M. (2001). Bank selection criteria employed by college students in Bahrain: An empirical analysis. International Journal of Bank Marketing, 19(3), 115-125.

  • Awan, H. M., & Shahzad Bukhari, K. (2011). Customer’s criteria for selecting an Islamic bank: Evidence from Pakistan. Journal of Islamic Marketing, 2(1), 14-27.

  • Chigamba, C., & Fatoki, O. (2011). Factors influencing the choice of commercial banks by university students in South Africa. International Journal of Business and Management, 6(6), 66-76.

  • Grady, B., & Spencer, H. (1990). Managing commercial banks. Hill International Inc., New York.

  • Hinson, R., Osarenkhoe, A., & Okoe, A. F. (2013). Determinants of bank selection: A study of undergraduate students in the University of Ghana. Journal of Service Science and Management, 6(3), 197-205.

  • Holstius, K., & Kaynak, E. (1995). Retail banking in Nordic countries: The case of Finland. International Journal of Bank Marketing, 13(8), 10-20.

  • Kaufman, G. G. (1967). A survey of business firms and households view of a commercial bank. Report to the Federal Reserve Bank of Chicago, Appleton, University of Wisconsin, Madison, WI.

  • Kaynak, E., & Kucukemiroglu, O. (1992). Bank and product selection: Hong Kong. International Journal of Bank Marketing, 10(1), 3-16.

  • Lelissa, T., & Metasebiya, L. (2017). Determinants of bank selection choices and customer loyalty the case of Ethiopian banking sector. Retrieved from https://ssrn.com/abstract=2967327 or http://dx.doi.org/10.2139/ssrn.2967 327

  • Martenson, R. (1985). Consumer choice criteria in retail bank selection. International Journal of Bank Marketing, 3(2), 64-75.

  • Mason, J. B., & Mayer, M. L. (1974). Differences between high-and-low-income savings and checking account customers. The Magazine of Bank Administration, 65(3), 48-52.

  • Phuong Ta, H., & Yin Har, K. (2000). A study of bank selection decisions in Singapore using the analytical hierarchy process. International Journal of Bank Marketing, 18(4), 170-180.

  • Raza, S. A., & Hanif, N. (2013). Factors affecting internet banking adoption among internal and external customers: A case of Pakistan. International Journal of Electronic Finance, 7(1), 82-96.

  • Saleh, M. S., Rosman, M. R. M., & Nani, N. K. (2013). Bank selection criteria in a customers’ perspective. Journal of Business and Management, 7(6), 15-20.

  • Sangwan, V. S., Gopinathan, U., Garg, P., & Rao, G. (2010). Eye banking in India: A road ahead. Journal of International Medical Sciences Academy, 23(3), 197-200.

  • Siddique, M. (2012). Bank selection influencing factors: A study on customer preferences with reference to Rajshahi city. Asian Business Review, 1(1), 80-87.

  • Zulfiqar, B., Arshad, H. M., Fareed, Z., Shahzad, F., & Hussain, S. (2014). Criteria of selecting bank in Pakistani banking sector: Study of banking customers in Sahiwal, Pakistan. International Journal of Managing Value and Supply Chains, 5(4), 19-31.


Abstract Views: 343

PDF Views: 0




  • Customer Criterion for Selecting a Bank:An Exploratory Factor Analysis from an Indian Perspective

Abstract Views: 343  |  PDF Views: 0

Authors

Gunjan Sharma
Assistant Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh, India
Kushagra Kulshreshtha
Associate Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh, India

Abstract


The Indian banks are paving their way towards the goal of financial inclusion, i.e., making financial services accessible to everyone. With the growing economy, banks are acting as a pillar for sustainable development. These days banks are facing a challenge to attract and retain their customers. They are formulating various strategies in order to gain or tap the maximum number of customers; therefore, it becomes imperative for banks to recognize the factors which the consumer consider while selecting a bank. This study focuses on the customers of north India , specifically the tier-2 and tier-3 cities, where people still lack in terms of financial literacy. A survey was conducted with a sample size of 330 respondents out of which 308 were considered for analysis. Various factors were identified using exploratory factor analyses which were reputation, technology, branch availability, appearance, word of mouth, customer services, price and amenities, These were well thought-factors by the customers keeping bank selection dimensions in the center stage. This kind of study would help banking specialists to customise their strategies in terms of increasing the number of customers as the competition is high in the market. Moreover, it would also help banks in formulating region-wise strategies.

Keywords


Banks, India, Exploratory Factor Analysis, Customers, Selection Criteria.

JEL Codes: M1.


References